EU commissioner to help resolve Iran’s banking problems Veep: Iran ‘credible partner’ for EU
Asenior European Union official has pledged to make efforts to help resolve banking problems hindering Iran’s trade with the 28-nation bloc. Speaking at a press conference in Tehran on Saturday, European Union Commissioner for Agriculture and Rural Development Phil Hogan highlighted the reasons for the banking problems impeding Iran-eu trade two years after the Iran nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), came into force, Tasnim News Agency reported.
The banking problems are related to major European banks, he said, adding that Iranian banks also need to attain the latest global standards.
Hogan further made assurances that he would try his best to remove the banking problems between Iran and the European Union, adding, however, that two years is not enough for resolving the problems.
Iran, ‘credible partner’
Hogan later met First Vice President Es’haq Jahangiri who told the EU official that the European Union can count on Iran as a “very credible partner” in economic cooperation.
Jahangiri said Iran is “seriously willing” to boost ties with the EU, hoping that multibillion-dollar agreements signed between the two sides would not remain on paper.
He said Iran expects the EU to stand against the US in its efforts to undermine the 2015 nuclear deal with world powers.
“We expect the European Union to encourage its companies to cooperate with Iran and support them to bolster their relations with Iran despite [US] wrench-throwing,” Jahangiri said. Hogan said the EU will stand by the landmark agreement. “[EU foreign policy chief Federica] Mogherini has made it clear that the EU will remain committed to the nuclear agreement and will convince those who do not want the deal to stick to it,” the EU official said.
A 70-member delegation of senior European officials and business leaders is in Tehran to examine capacities for further expansion of trade ties.
Hogan is heading the team which also includes 25 senior political officials.
The group arrived in Tehran on Saturday to participate in a conference of Iranian and EU entrepreneurs, especially those involved in agriculture, food industry and rural development.
The visit may lead to the opening of an EU trade office in Iran if the group comes to a positive assessment of capacities in the country.
That would facilitate exports of Iranian agricultural produce to Europe given the current impediments.
Given its unique ecology and rich soil, Iran is one of the largest fruit producers in the Middle East and North Africa, where the climatic diversity makes it possible to cultivate an assorted group of crops.
Fertile ground
The Iranian plateau is believed to be the homeland to a number of fruits, vegetables and ornamental plants such as Persian walnuts, pomegranates, peaches, spinach and tulips.
According to Iranian officials, as many as 240 million people across the region savor Iran’s horticultural products, primarily pomegranates, pistachios, saffron, figs, raisins and dates.
The country is the world’s seventh largest producer of citrus fruits, including a variety of oranges, tangerines, limes and lemons.
Agricultural exports exceed $6 billion a year, where horticultural products account for half of the earnings, with livestock and poultry coming next with a share of about 25 percent and crops with the other 25 percent.
Agriculture accounts for 13 percent of Iran’s GDP and over 20 percent of its employment. The sector has traditionally been the key foundational block of the Iranian society but it began to lose much of its significance when the first oil wells were struck.
The sector has its own detractors who say the industry uses up 92 percent of the country’s water resources draining its water tables amid inefficient agriculture and food production practices.
In recent years, Iranian taste buds are also being put to the test amid a rise in irregular imports of fruits which many believe can’t hold a candle to the local produce.
Iran is the world’s biggest exporter of pistachios which brought it more than $870 million in hard currency revenues last year. Among the agricultural products, tomato ketchup was the second biggest export item with $150 million and saffron the third with $130 million.
Russian market
The country, however, is looking to new markets and Russia features prominently among its new destinations for exports.
Iran’s exports of food products to Russia rose 35 percent in the six months since March, chairman of the board of food producers cooperative Mehdi Karimi Tafreshi said on Wednesday.
“During the period, Iran’s food exports to Russia reached about $450 million, compared to $310 million last year,” he said, citing dairy products, dried and fresh fruits, vegetables, raisins, canned food and sweets among the export items.
Karimi Tafreshi said President Vladimir Putin had ordered Russian traders to source 20 percent of the country’s needs for food from Iran, which would translate to $30 billion in value if it materialized.
“Putin’s order to supply 20 percent of food from Iran has provided a special opportunity for our country’s food industry,” he said.
Currently, Iran’s share in Russia’s agro-food imports of $27 billion is negligible. According to Karimi Tafreshi, the key issue is the high cost of Iranian products, which is due to the high cost of production in the country.